City compensatory allowance exemption questioned; treat as assessable pending final judicial determination and departmental appeal. The Tribunal held that the city compensatory allowance granted to a government servant is exempt as a special allowance, but the Income tax Department has ... Summary
City compensatory allowance exemption questioned; treat as assessable pending final judicial determination and departmental appeal.
The Tribunal held that the city compensatory allowance granted to a government servant is exempt as a special allowance, but the Income tax Department has appealed and not accepted this view; pending a judicial determination the allowance may be treated as assessable and employee assessees and employers responsible for tax deduction at source should note this position.
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